Fund Managers Lift Digital Asset Allocation to 1.3% in October

Fund managers’ average digital asset allocation climbed to 1.3% in October from 1.2% in July, as diversification became the most common reason respondents gave for holding the assets.

The survey had 28 respondents, who managed about $642 billion in assets. Diversification was cited by 40% as a reason for holding digital assets. Speculation ranked fifth, at less than 9%.

More respondents viewed digital asset valuations as attractive, but client demand declined. Managers also shifted their allocations from stocks and bonds toward commodities and digital assets rather than cash.

Bitcoin (BTC) retained the strongest growth outlook among the assets surveyed. Bitcoin and Ether (ETH) together accounted for 47% of respondents’ holdings. Preferences among alternative tokens shifted toward Hyperliquid, SUI and Uniswap, while expectations for Ether and Solana improved slightly.

Among respondents already invested in digital assets, volatility was the top risk. Regulatory concerns also remained high amid delays in passage of the CLARITY Act.